Energy Conservation Allstate seeks to conserve natural energy sources and to help limit greenhouse gas emissions. We conserve energy and manage energy costs through centralized procurement of energy supplies. We focus on energy saving initiatives for our building operations and maintenance, such as optimizing energy use in heating, air conditioning, computers, lighting and other essentials. While our conservation efforts are focused primarily on the property we own, specifically our Home Office campus where more than 7,000 employees are located, we are making similar efforts with our leased spaces as we develop a comprehensive calculation of our carbon footprint. In addition, Allstate has a new state-of-the-art data center in Rochelle, Illinois that is designed to meet Leadership in Energy and Environmental Design (LEED) certification standards. Water Conservation Allstate focuses on water conservation initiatives that help preserve this natural resource. We reduce water consumption, identify water saving opportunities, and install water-saving devices where appropriate. Our Home Office campus uses storm water retention ponds, making it 100 percent self-sufficient for our landscape irrigation purposes. Waste Management Allstate engages in responsible waste management to limit our impact on landfill sites, resource consumption and greenhouse gas emissions while encouraging large-scale recycling initiatives. We work to minimize the creation of waste. Waste that is not eliminated is generally reused, recycled or disposed of through safe and environmentally responsible methods. Recycling programs that exist within Allstate include paper, plastics, polystyrene, aluminum, toner cartridges and carpet. We also partner with outside organizations to responsibly dispose of items such as computer hardware, batteries, fluorescent lamps, PCB light ballasts and similar items used at our Home Office campus and other locations. Each year, Allstate recycles approximately 5.75 million pounds of paper through desk-side recycling and press waste recycling from our main company print facility. Allstate also recycles approximately 6,000 pounds of aluminum cans from our Home Office campus. Natural Landscaping Allstate seeks to increase regional biodiversity while reducing air pollution, the use of harmful lawn chemicals and harmful byproducts of landscape maintenance. We encourage the development of native landscaping and wildlife habitats on our property, and continue to explore the potential to expand natural landscaping to complement other plantings or establish new landscaped areas. We opt for ground-care practices that reduce the use of fume-producing mowers, fertilizers, pesticides, herbicides and insecticides. Investments We regularly consider environmentally friendly investment opportunities with attractive risk/reward trade-offs. In addition to our existing debt investments in wind, hydro and geothermal projects, Allstate recently committed funding to a solar power project located at Nellis Air Force Base in Nevada. Going forward, Allstate plans to commit at least $200 million in environmentally beneficial investments over the next three years. Transportation Allstate aims to improve overall air quality by minimizing the consumption of fossil fuels and reducing harmful emissions, airborne pollutants, traffic and parking lot congestion. We help reduce drive-alone commuting by expanding the availability and use of commuting alternatives for employees. We also maintain our company fleet of vehicles in optimal condition by performing preventive maintenance on our 1,200 vehicles and conducting regular emissions tests. Additionally, we have increased the fuel efficiency of our fleet by nearly 2 miles per gallon over the past three years, resulting in projected savings of nearly 80,000 gallons of gasoline in 2007 alone. Company-Owned Auto Repair Shops Allstate emphasizes worker safety and environmental protection at all Allstate owned auto repair shops. We provide shop employees with environmental and safety training and require shops to implement company initiatives including recycling programs for tires, batteries, metal, antifreeze and paint; responsible waste disposal; use of recycled or environmentally friendly supplies, air quality testing and regular compliance inspections.
Customers Allstate seeks opportunities to help our customers offset their impact on the environment. We continue to explore environmentally friendly product and incentive options for our customers. In addition, for both our property and casualty and financial services products, we have introduced paperless billing (Allstate Easy Pay Plan) and communication options in many cases. We also have encouraged state and federal agencies to expand permitted paperless options where currently limited by regulations. Approximately 1.7 million of our customers’ insurance policies are paid using this environmentally friendly option, and this number continues to grow as approximately 25 percent of our new customers sign up for paperless billing. Employees Allstate seeks to ensure that every employee has the benefit of a safe and healthy work environment. We conduct regularly scheduled indoor air quality sampling at Allstate-owned and leased facilities. The purpose of these tests is to ensure that our indoor air quality meets current guidelines for employee comfort set by nationally acknowledged testing organizations and Federal guidelines, including the American Society of Heating, Refrigeration and Air Conditioning Engineers; the Indoor Air Quality Association; and the U.S. EPA. We also conduct asbestos testing at Allstate-owned facilities prior to renovation. Agency Owners and Staff Allstate encourages responsible environmental management across the enterprise. As business owners in communities across the country, our nearly 13,000 Allstate Agency owners and their staff are encouraged to conduct business in an environmentally responsible manner. In November 2007, Allstate will test a Green Agency Program to allow agency owners to offset the environmental impact of operating their offices via a contribution to Carbonfund.org. These donations will be directed to reforestation and wind energy projects within the U.S. In addition, participating agencies will receive tips and advice on reducing the energy usage of their business. Business Partners Allstate reduces resource consumption, waste, greenhouse gas emissions, environmental risks, health hazards and costs through the responsible procurement of goods and services. Our Sourcing and Procurement Department identifies environmentally responsible opportunities with the company’s supply chain streams and encourages business partnerships with suppliers who implement environmental policies of their own. Our procurement representatives purchase recyclable, recycled and refurbished products and materials whenever these products are available, economical and suitable. Third-Party Affiliations Allstate is actively engaged with a variety of environmental and corporate social responsibility organizations and groups. We are members or participants in the following projects and programs: Business for Social Responsibility Business Roundtable Climate RESOLVE Carbon Disclosure Project Chicago Climate Change Task Force
Risk Modeling We closely follow ongoing scientific and hurricane modeling research through regular discussions with premiere hurricane modelers. We examine the prevailing scientific thought about how climate change might be expected to impact the frequency and severity of future hurricanes. Advocacy Efforts Because of our experience with catastrophe management, Allstate has helped to establish a coalition, ProtectingAmerica.org, that is actively working to raise awareness, educate the public and policymakers, and offer solutions that will better prepare and protect consumers, taxpayers and the American economy from major catastrophes in a sensible, cost-effective fashion. Included as part of this solution are stronger building codes and sensible land use policies to reduce the impact of catastrophes.